A Competitive Market Is

question 124

Multiple Choice

A competitive market is

• A)one in which firms cannot change output levels.
• B)any market with several firms in it.
• C)a market with a single firm.
• D)one in which a single firm cannot influence market price.
• E)one in which consumers compete to buy goods and services.

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Definitions:

Trade Acceptance

A written promise or a draft by one party, the seller, to another, the buyer, to pay a specified sum of money at a future date.

Sight Draft

A financial instrument that is payable on demand when presented to the drawee.

Net Present Value

is a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Credit Sale

A transaction where the buyer is allowed to pay for goods or services at a later date, as opposed to paying at the time of sale.